Utilities seek stimulus funds

COLUMBUS, Ohio — Utilities on Thursday sought up to $200 million apiece from the federal government’s stimulus package that they would use to modernize the nation’s electric distribution system.

The Department of Energy will award $4.5 billion as part of President Barack Obama’s $787 billion stimulus package passed early this year by Congress.

Utilities want to use the money to accelerate programs in place and for demonstration projects that they say will make their customers more energy efficient and can lay the groundwork for programs that allow customers to shift electricity use to off peak times to save money.

Utilities are spending billions of dollars on the projects.

Charlotte, N.C.-based Duke Energy and Dominion Virginia Power are among utilities seeking to accelerate programs to replace traditional meters with so-called smart meters that provide more information to customers about electricity usage and how to reduce consumption. Peco wants to roll out similar meters for the Philadelphia area.

The meters also help utilities learn more quickly about outages, improve reliability and develop voluntary programs for customers that can limit their consumption of electricity at times of peak demand. The utilities also say the systems they are installing will help integrate plug-in hybrid electric vehicles into the grid.

Akron, Ohio-based FirstEnergy is seeking up to $57 million for programs that include a way to reduce electricity at times of peak demand in York, Pa., through a system that directly controls air conditioners and other customer appliances.

Duke also is seeking an additional $14 million for demonstration projects that include ways to improve transmission systems.